Welcome to 2012. The next 12 months promises a year of potential changes, and some of these could mean more stability and certainty. In the greater scheme of things, expectations are that there would be a clearer picture of the European debt crisis, reducing market instability as witnessed last year. In addition, the United States will have a presidential election, giving everyone an idea of which direction the world's largest economy is headed.

Domestically, Hong Kong will have a new chief executive in July. The housing policy for the next administration will be clear within the year. A government initiative to change the way new flats are sold, including a proposed ban on the use of saleable area despite strong opposition from the property sector, will also become clearer.

Uncertainties mean a challenging outlook for the property market, as reported in our cover story for this issue of LuxeHomes, but solid demand remains. We still hear about record-breaking deals, and new projects are attracting plenty of buyers locally and from across the border. As we look forward to an interesting year ahead, we would like to wish all our readers a prosperous new year, and many happy homes.